Question

b) After allowing 16% discount on the marked price of a watch, 13% Value Added Tax (VAT) was levied on it. If the watch was sold for Rs 4,746, calculate the marked price of the watch.​

Answer 1

To calculate the marked price of the watch, we'll need to work backwards from the final selling price, considering the discount and the Value Added Tax (VAT) levied.

Let's denote the marked price as "M."

Given:
Selling price after discount and VAT = Rs 4,746
Discount = 16%
VAT = 13%

Step 1: Calculating the selling price before VAT
Let's assume the selling price before VAT as "X."

X = Selling price after VAT / (1 + VAT rate)
X = Rs 4,746 / (1 + 0.13)
X = Rs 4,746 / 1.13
X ≈ Rs 4,200

Step 2: Calculating the marked price before discount
Let's assume the marked price before the discount as "Y."

Y = Selling price before VAT / (1 - Discount rate)
Y = Rs 4,200 / (1 - 0.16)
Y = Rs 4,200 / 0.84
Y ≈ Rs 5,000

Therefore, the marked price of the watch would be approximately Rs 5,000.

Please note that the actual marked price may have been rounded to the nearest value in the given calculation.



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